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Obama and the looming Social Security crisis : Hope not enough
How will the Hope mantra morph into an actual plan which is adjusted to the new facts, and which really works?
As the American population grows older and millions of the Baby Boom demographic "age into" the Social Security program, expaning the numbers of beneficiaries, Obama is clearly concerned about federal spending. He said so earlier last month, in a televised press conference, in which he spoke of healthcare reform, social security, Medicaid, and other federal programs. In a recent piece about the SS crisis in Newsmax.com , Obama was quoted as saying,
"We have a steep mountain to climb, and we started in a very deep valley."
And that is an understatement, if one has studied the facts. The Hope and Change rhetoric of Obama was sincere, and realistic for a long-term plan; however, anyone who believed that Obama had instant solutions up his sleeve was deluded. As Benjamin Franklin said, "He who lives upon hope will die fasting." Obama is too much the pragmatist to leave his supporters, and the nation, in such a state. His plan must include a realistic vision of reasonable scope. An excellent article from Huffington Post, from August 21, complete with the full text of Obama's speech and Q & A session can help clarify:
http://www.huffingtonpost.com/2009/08/21/obama-invokes-fdrs-battle_n_264791.html
Congressman Spencer Bachus (R - Alabama) who is a ranking member of the House Financial Services Committee has said that the situation is far worse than anyone knows, and is quoted as saying the system could collapse within 2 years. In a compelling blogpost of Aug. 22 on Red State, a blogger went back to the campaign days and found this quote:
President Obama is eager to seek a bipartisan solution to ensure the long-term solvency of Social Security, people who have spoken with him say, but he is running into opposition from his party’s left and from Democratic Congressional leaders who contend that his political capital would be better spent on health care and other priorities.
Sometimes the crisis in federal programs, taken together with the entire economic fiasco we are are faced with, cause some to question if "it is time for America to become a Swedish-style welfare state. On a conservative European blog, an analysis was done of Sweden's progressive transformation into a welfare state, with this conclusion:
These policies and outcomes greatly diminished the incentives to work, save and invest. Economic growth slowed to a crawl. Other countries that avoided the excess spending, taxing and regulation of Sweden grew more rapidly, leaving Sweden in the dust. Sweden is still a prosperous country, but far from the top, and its per capita income has fallen to just about 80 percent of that in the United States.. . T hose who wish to chase the Swedish model need first to decide which model they seek: The high-growth, pre-1960 model; the low-growth model of the 1970s and 1980s; or the reformist, welfare-state model of recent years.. . The irony is that the current Democrat Congress and administration are rapidly emulating the parts of the Swedish model that proved disastrous and rejecting those parts that are proving to be successful.
Surely the situation cannot be as simple as all that. Obama was a Harvard scholar; a philosophical pragmatist, and a robust progressive. I cannot bring myself to believe that he is following some out -moded Swedish model, one which nearly sank them a decade and a half ago. No: It is more likely that European conservatives would like to view him as a dolt.
Just because Sweden reversed its poition, does not follow that the model it now follows is the correct one for us. After all, the same argument can be turned on its head: Sweden reversed itself; ergo, America should too, moving in a more socialistic direction. In any case, this is a situation which will continue to call for commentary as it unfolds.
Crowd Power
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smkovalinsky
New York, New York, United States



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